Puget Sound Divers is a company that provides diving services such as underwater ship repairs...
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Accounting
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below:
Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q)
100
Revenue ($365.00q)
$
36,500
Expenses:
Wages and salaries ($8,000 + $125.00q)
20,500
Supplies ($3.00q)
300
Equipment rental ($1,800 + $32.00q)
5,000
Insurance ($3,400)
3,400
Miscellaneous ($630 + $1.80q)
810
Total expense
30,010
Net operating income
$
6,490
During May, the companys actual activity was 105 diving-hours.
Required:
Prepare a flexible budget for May.
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